‘Quarter hit by card penalty fees’
One in four Britons has incurred a penalty fee on their credit card during the past year, with people collectively paying out more than £230 million, a survey has showed.
An estimated 10.2 million people have been charged fees for being late with a monthly repayment or going over their credit limit, according to financial website moneysupermarket.com.
But despite the high number of people caught out, only 12% of credit card holders said they would like to see them replaced with a set monthly or annual charge.
Rob Kenley, head of credit cards at moneysupermarket.com, said: “Penalty fees still affect a significant proportion of the population and providers are raking in some hefty cash, even after the Office of Fair Trading-imposed £12 cap.”
But he said the survey suggested consumers would not respond well to the introduction of monthly or annual card fees.
He said: “If providers were thinking about introducing them, they would have to offer cardholders much more than simply replacing penalty fees.
“Even longer 0% introductory offers or higher cashback offers spring to mind as a starting point.”